Some smart guy for Forbes Magazine (Jeffrey Dorman)....sat down and analyzed the minimum wage hike discussion over $10.10 being the new magical number.
What this amounts to....is a $2.85 wage increase. What isn't told by the really smart guys in Congress or in the media world....is that this crowd of people when given the raise....will go beyond some government safety catches, and lose some of their hard-earned benefits.
Higher payroll taxes? Yes. From the $2.85....there's a 22-cent loss on taxes.
EITC loss? That's the earned income tax credit. Figure around 24-cents loss here.
Supplemental Nutritional Assistance Program loss? That's SNAP, and the loss is 91-cents.
Yeah, roughly half of the $2.85 would be lost because of the way that we've gimmicked society, those on welfare, and the poor in America.
Naturally, it'd beg for us to modify the tax program, EITC, and the SNAP deal. In discussion? No. It'll be one of those last-minute "I-woke-up" episodes where some Senators says it's a dire emergency....because we fixed one problem and screwed up another.
The amazing thing about all of this? We could have moved the minimum wage to $15 an hour, then told Congress that they were forbidden from altering the tax system, EITC or SNAP, period. Rather than force tax-payers to feed the "herd"....let the system work like it should and let a Burger King menu deal run for $12.
Yeah, I realize that some people would be extremely frustrated that their various programs no longer work. But the truth is.....we've screwed up the system so much, that nothing works like it was designed to work anyway.